Taxes for Welfare – a petition to the Scottish Parliament

‘Calling on the Scottish Parliament to urge the Scottish Government to make more money available to mitigate the impact of UK Government welfare cuts through reassessing spending priorities and bringing in more progressive taxation.’

Tory austerity is turning the welfare system into a new penal system for the poor, with benefit cuts that are destroying livelihoods and lives. Smith ensured that all the major means-tested benefits remained with Westminster, but Scotland has gained powers to add new benefits, and to alter income tax bands and rates. Without powers over other taxes and economic levers, possibilities are limited, but it is still important to make maximum use of the powers we have, both for the sake of the people this will help, and if we are to demand the need for the full control that comes with Independence.

The Scottish Government already provides important help through mitigating some of the cuts (notably the bedroom tax) and giving emergency grants. But there are urgent calls for more help from so many different groups who have found themselves at the sharp end of Westminster cuts, as well as pressing demands for more spending on council services, public sector pay, and all the things that make a decent society. If these are not to be forced to compete with each other in some sort of competition in desperation, then the Scottish Government will have to find more money by bringing in more progressive taxation. Indeed they have a moral duty to do so.

To help put this case we have submitted a formal petition‘Calling on the Scottish Parliament to urge the Scottish Government to make more money available to mitigate the impact of UK Government welfare cuts through reassessing spending priorities and bringing in more progressive taxation.’

We urge everyone to show their support by adding their name. There is also scope to add your own comments and experiences.

We have seen the huge difference made by existing mitigation policies such as the payment of Bedroom Tax and the help provided by the Scottish Welfare Fund. The situation is much worse south of the border. But that is not enough. Thousands of people are still struggling, and unless funding is increased any improvement in one area becomes a case of robbing Peter to pay Paul. The Scottish Government have dismissed widely-supported calls for an extra £5 on Child Benefit, and they have turned down our call for additional support through the Scottish Welfare Fund for people who have lost out in the transfer from DLA to PIP as they wait for the new Scottish disability benefit to be brought in. Even without this, demands on the Scottish Welfare Fund are set to increase considerably as Universal Credit is rolled out to more and more areas, and there is also insufficient money for everyone hit by the Benefit Cap to get help via Discretionary Housing Payments. These are all crucial areas and the focus of vital campaigns, and underlying all is the need for more money.

Our government has a political and moral duty to help the poorest in our society, and it can do this by taking more taxes from those with the biggest incomes and land-holdings. As if the human case were not enough, spending more on social security also makes sound financial sense as failure to provide help at this stage has major financial as well as human consequences.

As welfare activists and campaigners, with a regular stall outside the jobcentre and further interaction with those at the sharp end of welfare ‘reform’ through phone and internet, we are only too aware of what is happening and the urgent need for more help. We also keep a vigilant watch on what is happening in other places and the fears that have been raised about future changes. We can see the urgency of the different calls that have been raised for more help in different areas – for children, for the disabled (including people in the ESA WRAG group and its Universal Credit equivalent who have lost £30 a week, and people who have lost out in the transfer from DLA to PIP.), for carers, for people waiting for Universal Credit, for people affected by the benefit cap, for people losing out on Universal Credit for their third child. We recognise the importance of all these needs and don’t want to see them being forced to compete against each other for the small sums currently available. We don’t believe this is necessary, nor even financially prudent. We have seen directly how the lack of relatively small sums of money at a crucial time can have major knock-on effects on individuals and families that, as well as being personally damaging, result in much greater demands on the public purse through social and health services. The huge growth of mental health problems linked to welfare ‘reform’ is a case in point. (See ‘Government welfare cuts blamed for 50% surge in mental health issues among unemployed’, Independent 16 July 2017.)

The sort of severe rationing that we are currently looking at is not necessary because we can access the money to do something about it. We can start by recognising welfare for the priority it is, but we know that with the cuts to the block grant that will not be enough. However the Scottish Government is now able to make changes to the tax system to raise more money from those with the highest incomes. And it could also introduce more progressive local taxation through introducing a Land Value Tax. There is growing recognition of the need for the Scottish Government to back up its caring social rhetoric with more progressive action. This has been demonstrated by the 38Degrees petition in response to the First Minister’s proposal for an ‘open conversation’ on tax increases, and has been repeatedly raised in the Scottish Parliament by the Scottish Greens. Even with the limited devolution that we have, and without full welfare powers or full tax powers, we do have the ability to make more of a difference, and we have the moral duty to use it.

2 thoughts on “Taxes for Welfare – a petition to the Scottish Parliament”

Would be better doing a petition to demand the Scottish government take the welfare powers agreed in Smith, instead of taking them last year they handed them back and never even demanded that PIP roll out be stopped , the Fraser of Allander institute tells us the total welfare bill in Scotland is up and at nearly £18 billion per year.

The simple fact is when CPAG Scotland and other charity groups tells us through the Scottish government consultation process (Yes another one) there is nothing to stop them doing it and simply change the rules for Scot’s and in fact even now they tell us the Scottish government could change rules on assessments and so.

When the ruling party and Labour worked together to mitigate the bedroom tax , I thought they could work together again, after all both party’s always complain about deaths linked to the medicals, but ignore the fact they could have stopped PIP last year and taken over most of the disability benefits , including keeping UC at fortnightly. As the total cost of setting up the system at £190 million and counting, why not pay a fee for administration costs and simply kept DLA whilst setting up a system, ensure assessments are recorded as recommended by most impartial observers, instead it’s 2020, given the Scottish government’s record on IT systems etc 2020 may not be realistic.

As said if the SNP and others complain about deaths linked to assessment and rightly blame the Tories, then the blame from now until 2020 is at the SNP door and knocking loudly.

We have consistently called on the Scottish Government to delay the switch from DLA to PIP, or, if that is technically not possible, to provide help to those who can’t wait until 2020. We have also called for mitigation for a lot of other Tory benefit cuts. This petition is the result of our concern that each of these demands could be seen as in competition with the others for an increasingly limited budget. The only way they can begin to respond to all these demands is to raise more money for welfare through progressive use of the new tax powers. The Scottish Government is discussing how to use the new powers at the moment, before its budget in mid December. This is our contribution to that discussion.